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Diamond Corp

Question 48

Essay

Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2019 indicated the following: Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2019 indicated the following: The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly. A)Prepare a bank reconciliation in proper form for October 31, 2019. B)What amount would Diamond report its cash balance on its October 31, 2019, balance sheet? The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.
A)Prepare a bank reconciliation in proper form for October 31, 2019.
B)What amount would Diamond report its cash balance on its October 31, 2019, balance sheet?

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